News Archives - Page 4 of 35 - Magnachip Semiconductor

Revenue of $57.0 million was within our guidance range. YoY, our revenue decreased 45.2% primarily due to continued effects of last year’s 28nm wafer supply shortage that impacted second half 2022 design-wins and the ongoing inventory correction driven by weak consumer demand.
Gross profit margin was 21.2%, at the low end of our guidance range. The sequential decrease was primarily due to lower utilization rate of our internal fabrication facility in response to the industry-wide slowdown and higher fab costs.
GAAP diluted loss per share was $0.49.
Non-GAAP diluted loss per share was $0.24.

SEOUL, South Korea, May 3, 2023 /PRNewswire/ — Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the first quarter 2023.

(PRNewsfoto/Magnachip Semiconductor)

YJ Kim, Magnachip’s chief executive officer commented, “Our Q1 results continued to be affected by last year’s OLED wafer shortages that impacted second half design-wins and the ongoing smartphone inventory correction in our Display business and weak consumer demand in our Power business. Despite the challenging environment, we remained focused on execution during the quarter. In our Display business, we successfully delivered our second OLED DDIC project sample ahead of schedule to a large non-Korean panel customer and remain on track for second half smartphone launches. We also completed the tape-out for a high-end smartphone project with a large Korean panel customer, with mass production on schedule near the end of this year. In our Power business, we continued our record pace of design-in and -win activities, driven by momentum in industrial, automotive and computing applications. Looking ahead, the macro environment remains uncertain. However, we believe we are bumping along the bottom for the Display business and we have hit the bottom in Q1 for our Power business.”

YJ Kim continued, “Overall, we expect our financial results to remain soft in the near term, but we believe both Display and Power are poised for a recovery in the second half of this year based on our current customer feedback.”

Q1 2023 Financial Highlights

	In thousands of U.S. dollars, except share data
	GAAP
	Q1 2023		Q4 2022			Q/Q change				Q1 2022			Y/Y change
Revenues
Standard Products Business
Display Solutions	10,841			7,556			up	43.5	%		29,185			down	62.9	%
Power Solutions	40,673			46,271			down	12.1	%		64,825			down	37.3	%
Transitional Fab 3 foundry services⁽¹⁾	5,491			7,163			down	23.3	%		10,083			down	45.5	%
Gross Profit Margin	21.2	%		26.4	%		down	5.2	%pts		37.5	%		down	16.3	%pts
Operating Income (Loss)	(21,818			(10,117)			down	n/a			12,879			down	n/a
Net Income (Loss)	(21,470			2,971			down	n/a			9,528			down	n/a
Basic Earnings (Loss) per Common Share	(0.49			0.07			down	n/a			0.21			down	n/a
Diluted Earnings (Loss) per Common Share	(0.49			0.07			down	n/a			0.20			down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP⁽²⁾
	Q1 2023		Q4 2022			Q/Q change				Q1 2022			Y/Y change
Adjusted Operating Income (Loss)	(12,249			(8,567)			down	n/a			14,517			down	n/a
Adjusted EBITDA	(7,873			(4,768)			down	n/a			18,755			down	n/a
Adjusted Net Income (Loss)	(10,367			(15,848)			up	n/a			12,936			down	n/a
Adjusted Earnings (Loss) per Common Share—Diluted	(0.24			(0.36)			up	n/a			0.28			down	n/a

__________________
(1)	Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, and for a period of up to three years, we will provide transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi (“Transitional Fab 3 Foundry Services”). Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products display solutions and power solutions businesses.
(2)	Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income (loss) or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Financial Guidance

While actual results may vary, Magnachip currently expects the following for Q2 2023:

Revenue to be in the range of $58 million to $63 million, including about $8 millions of Transitional Fab 3 Foundry Services.
Gross profit margin to be in the range of 21% to 23%.

Based on our current projections, and assuming a steady state global economy, we are cautiously optimistic that our key financial metrics have the potential to show sequential improvement in both the third and fourth quarters of 2023.

Q1 2023 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Thursday, May 3, 2023, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.

Online registration: https://register.vevent.com/register/BI51f45e599c544fe9bad00a197e100fca

Safe Harbor for Forward-Looking Statements

Information in this release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including second quarter 2023, third quarter 2023 and full year 2023 revenue and gross profit margin expectations, and the impact of market conditions associated with inflation and higher interest rates, remaining effects from the COVID-19 pandemic, geopolitical conflict between Russia and Ukraine, escalated trade tensions between the U.S. and China and continuing supply constraints on Magnachip’s second quarter 2023 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; remaining effects from the COVID-19 pandemic, the geopolitical conflict between Russia and Ukraine, and escalated trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely -acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the remaining effects of the COVID-19 pandemic; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on February 22, 2023, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACT:
Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share data) (Unaudited)

		Three Months Ended
	March 31,				December 31,				March 31,
		2023				2022				2022
Revenues:
Net sales – standard products business		$	51,514			$	53,827				$	94,010
Net sales – transitional Fab 3 foundry services			5,491				7,163					10,083
Total revenues			57,005				60,990					104,093
Cost of sales:
Cost of sales – standard products business			37,312				37,150					56,080
Cost of sales – transitional Fab 3 foundry services			7,599				7,742					9,017
Total cost of sales			44,911				44,892					65,097
Gross profit			12,094				16,098					38,996
Gross profit as a percentage of standard products business net sales			27.6	%			31.0	%				40.3	%
Gross profit as a percentage of total revenues			21.2	%			26.4	%				37.5	%
Operating expenses:
Selling, general and administrative expenses			12,165				12,562					14,163
Research and development expenses			13,298				13,653					11,954
Early termination charges			8,449				—					—
Total operating expenses			33,912				26,215					26,117
Operating income (loss)			(21,818)				(10,117)					12,879
Interest income			2,842)				2,420					715)
Interest expense			(256)				(269)					(111)
Foreign currency gain (loss), net			(3,430)				17,492					(690)
Other income (expense), net			(35)				(42)					218
Income (loss) before income tax expense			(22,697)				9,484					13,011
Income tax expense (benefit)			(1,227)				6,513					3,483
Net income (loss)		$	(21,470)			$	2,971				$	9,528
Basic earnings (loss) per common share—		$	(0.49)			$	0.07				$	0.21
Diluted earnings (loss) per common share—		$	(0.49)			$	0.07				$	0.20
Weighted average number of shares—
Basic			43,390,832				44,054,275					45,603,208
Diluted			43,390,832				44,731,683					46,693,294

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share data) (Unaudited)

	March 31, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents		$ 212,085		$ 225,477
Accounts receivable, net		32,143		35,380
Inventories, net		36,360		39,883
Other receivables		5,342		7,847
Prepaid expenses		11,238		10,560
Hedge collateral		2,820		2,940
Other current assets		14,927		15,766
Total current assets		314,915		337,853
Property, plant and equipment, net		104,568		110,747
Operating lease right-of-use assets		5,413		5,265
Intangible assets, net		1,784		1,930
Long-term prepaid expenses		9,101		10,939
Deferred income taxes		37,380		38,324
Other non-current assets		14,683		11,587
Total assets		$ 487,844		$ 516,645
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 19,921		$ 17,998
Other accounts payable		9,216		9,702
Accrued expenses		17,125		9,688
Accrued income taxes		146		3,154
Operating lease liabilities		1,622		1,397
Other current liabilities		5,261		5,306
Total current liabilities		53,291		47,245
Accrued severance benefits, net		23,608		23,121
Non-current operating lease liabilities		3,996		4,091
Other non-current liabilities		13,596		14,035
Total liabilities		94,491		88,492
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 56,437,182 shares issued and 42,589,315 outstanding at March 31, 2023 and 56,432,449 shares issued and 43,824,575 outstanding at December 31, 2022		564		564
Additional paid-in capital		267,187		266,058
Retained earnings		314,036		335,506
Treasury stock, 13,847,867 shares at March 31, 2023 and 12,607,874 shares at December 31, 2022, respectively		(173,441)		(161,422)
Accumulated other comprehensive loss		(14,993)		(12,553)
Total stockholders’ equity		393,353		428,153
Total liabilities and stockholders’ equity		$ 487,844		$ 516,645

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited)

	Three Months Ended
	March 31, 2023	March 31, 2022
Cash flows from operating activities
Net income (loss)	$ (21,470)	$ 9,528
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	4,357	3,891
Provision for severance benefits	2,330	1,670
Loss on foreign currency, net	9,082	6,380
Provision for inventory reserves	1,138	145
Stock-based compensation	1,120	1,638
Other, net	237	161
Changes in operating assets and liabilities
Accounts receivable, net	2,973	(1,213 )
Inventories	1,062	1,456
Other receivables	2,376	667
Other current assets	1,456	(6,829 )
Accounts payable	1,904	538
Other accounts payable	(1,424 )	(702 )
Accrued expenses	7,600	187
Accrued income taxes	(2,923 )	(2,346 )
Other current liabilities	(596 )	(711 )
Other non-current liabilities	(169 )	(73 )
Payment of severance benefits	(871 )	(1,389 )
Other, net	(306 )	(178)

Net cash provided by operating activities	7,876	12,820
Cash flows from investing activities
Proceeds from settlement of hedge collateral	1,155	1,829
Payment of hedge collateral	(1,093 )	(2,891 )
Purchase of property, plant and equipment	(135 )	(944 )
Payment for intellectual property registration	(74 )	(59 )
Payment of guarantee deposits	(3,482 )	(79 )
Other, net	19	2

Net cash used in investing activities	(3,610 )	(2,142 )
Cash flows from financing activities
Proceeds from exercise of stock options	9	1,781
Acquisition of treasury stock	(12,264 )	(830 )
Repayment of financing related to water treatment facility arrangement	(126 )	(134 )
Repayment of principal portion of finance lease liabilities	(24 )	(16 )

Net cash provided by (used in) financing activities	(12,405 )	801
Effect of exchange rates on cash and cash equivalents	(5,253 )	(6,105 )

Net increase (decrease) in cash and cash equivalents	(13,392 )	5,374
Cash and cash equivalents
Beginning of the period	225,477	279,547

End of the period	$ 212,085	$ 284,921

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (In thousands of U.S. dollars) (Unaudited)

		Three Months Ended
	March 31,			December 31,			March 31,
	2023			2022			2022
Operating income (loss)		$	(21,818)		$	(10,117)		$	12,879
Adjustments:
Equity-based compensation expense			1,120			1,550			1,638
Early termination charges			8,449			—			—
Adjusted Operating Income (Loss)		$	(12,249)		$	(8,567)		$	14,517

We present Adjusted Operating Income (Loss) as a supplemental measure of our performance. We define Adjusted Operating Income (Loss) for the periods indicated as operating income (loss) adjusted to exclude (i) Equity-based compensation expense and (ii) Early termination charges.

For the three months ended March 31, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) (In thousands of U.S. dollars, except share data) (Unaudited)

		Three Months Ended
	March 31,			December 31,			March 31,
	2023			2022			2022
Net income (loss)		$	(21,470)		$	2,971		$	9,528
Adjustments:
Interest income			(2,842)			(2,420)			(715)
Interest expense			256			269			111
Income tax expense (benefit)			(1,227)			6,513			3,483
Depreciation and amortization			4,357			3,775			3,891
EBITDA			(20,926)			11,108			16,298
Equity-based compensation expense			1,120			1,550			1,638
Foreign currency loss (gain), net			3,430			(17,492)			690
Derivative valuation loss, net			54			66			129
Early termination charges			8,449			—			—
Adjusted EBITDA		$	(7,873)		$	(4,768)		$	18,755

Net income (loss)		$	(21,470)		$	2,971		$	9,528
Adjustments:
Equity-based compensation expense			1,120			1,550			1,638
Foreign currency loss (gain), net			3,430			(17,492)			690
Derivative valuation loss, net			54			66			129
Early termination charges			8,449			—			—
Income tax effect on non-GAAP adjustments			(1,950)			(2,943)			951
Adjusted Net Income (Loss)		$	(10,367)		$	(15,848)		$	12,936
Adjusted Net Income (Loss) per common share—
– Basic		$	(0.24)		$	(0.36)		$	0.28
– Diluted		$	(0.24)		$	(0.36)		$	0.28
Weighted average number of shares – basic			43,390,832			44,054,275			45,603,208
Weighted average number of shares – diluted			43,390,832			44,054,275			46,693,294

We present Adjusted EBITDA and Adjusted Net Income (Loss) as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss, net and (iv) Early termination charges. EBITDA for the periods indicated is defined as net income (loss) before interest income, interest expense, income tax expense (benefit) and depreciation and amortization.

We prepare Adjusted Net Income (Loss) by adjusting net income (loss) to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income (Loss) is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income (Loss) for the periods as net income (loss), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss, net, (iv) Early termination charges and (v) Income tax effect on non-GAAP adjustments.

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SOURCE Magnachip Semiconductor Corporation

– Magnachip introduces new 600V SJ MOSFET with R_DS(on)* as low as 44mΩ for EV chargers and servers

SEOUL, South Korea, May 2, 2023 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip” or “Company”) (NYSE: MX) announced today that the Company has released a new family of 600V Super Junction Metal Oxide Semiconductor Field Effect Transistors (SJ MOSFETs) consisting of nine distinct products featuring proprietary design technology.

Magnachip’s proprietary design provides specific on-resistance (R_SP) reduction of about 10%, and this result was achieved while maintaining the same cell-pitches of previous generation MOSFETs.

In addition, the new product family of 600V SJ MOSFETs is equipped with a fast recovery body diode. This diode technology significantly enhances system efficiency with reduced reverse recovery time (t_rr) and switching loss. Therefore, the figure of merit to evaluate general performance of MOSFETs was improved by more than 10% compared to the previous generation. As such, these 600V SJ MOSFETs can be used widely in industrial applications, such as solar inverters, energy storage systems, uninterruptible power supply systems, and a variety of electronics.

Among these new MOSFETs, the MMQ60R044RFTH product offers an exceptionally low R_DS(on) of 44mΩ, making it an optimal choice for electric vehicle chargers and servers. Omdia, a global market research firm, estimates that the compound annual growth rates of Si MOSFET markets for hybrid & electric vehicles and servers will be 11% and 7%, respectively, from 2023 to 2026.

“Now that we have introduced these 600V SJ MOSFET products, we are aiming to unveil new 650V and 700V SJ MOSFET products with fast recovery body diode in the second half of 2023,” said YJ Kim, CEO of Magnachip. “These new MOSFETs represent a notable achievement for the Company, and we will build upon this success to deliver next-generation power solutions for rapidly changing market requirements and customer expectations.”

————————————————————————————————————————
* R_DS(on): On resistance, the resistance between the drain and the source of MOSFETs during on-state operation.

New Family of 600V SJ MOSFET Products

Related Link

Power Solutions > SJ MOSFETs > 600V

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Yujia Zhai
The Bueshirt Group
Tel. +1-860-214-0809
Investor.relations@maganachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Debuts New Family of 600V SJ MOSFET Products Featuring Fast Recovery Body Diodes

SEOUL, South Korea, April 17, 2023 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that it will report its financial results for the first quarter ended March 31, 2023, on Wednesday, May 3, 2023, after the market close. The Company will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results.

Magnachip logo

In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call.

Online registration: https://register.vevent.com/register/BI51f45e599c544fe9bad00a197e100fca

A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the company’s website at www.magnachip.com.

About Magnachip Semiconductor Corporation

CONTACTS:

Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com

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SOURCE Magnachip Semiconductor Corporation

SEOUL, South Korea, April 13, 2023 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip” or the “Company”) (NYSE: MX) announced today that shareholder Gilbert Nathan will join its Board of Directors pursuant to the terms of an agreement (the “Agreement”) entered into with Mr. Nathan and two of his affiliated entities. Under the terms of the Agreement, Mr. Nathan will immediately join the Company as an observer of the Company’s Board of Directors (the “Board”) and any ad hoc Strategic Review Committee of the Board (the “Strategic Review Committee”). In addition, reasonably promptly following the Company’s 2023 Annual Meeting of Stockholders, the Board will appoint Mr. Nathan as a director. Mr. Nathan will serve on the Strategic Review Committee upon becoming a member of the Board. After the appointment of Mr. Nathan to the Board following the 2023 Annual Meeting of Stockholders, the Board will be comprised of seven directors. Magnachip logo

“We welcome the addition of Mr. Nathan to the Magnachip board. The board looks forward to leveraging Mr. Nathan’s financial advisory and consulting experience as we work to continue to enhance the value of Magnachip for our shareholders,” stated Camillo Martino, Chairman of the Board of Magnachip.

“I’d like to thank the board of Magnachip for welcoming me. I look forward to joining this board of highly qualified directors and bringing my perspective as an investor to the board as we work together to maximize shareholder value,” said Gilbert Nathan, Managing Member of Jackson Square Advisors LLC.

About Gilbert Nathan

Mr. Nathan is the managing member of Jackson Square Advisors LLC and is the CEO of Keycon Power Holdings. He currently serves on the board of directors of Ready Capital (RC) and Alto Ingredients (ALTO). He is the Plan Administrator for Mahwah Bergen Retail Group and Mission Coal. Prior to starting Jackson Square, Mr. Nathan spent 14+ years at hedge funds specializing in event driven and distressed debt. He received his BS degree in Management, Major in Finance from the A.B Freeman School of Business at Tulane University.

About Magnachip Semiconductor Corporation

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

Safe Harbor for Forward-Looking Statements

CONTACT:
Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com

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SOURCE Magnachip Semiconductor Corporation

– The PDFN56 dual package enables small footprint and low conduction losses

SEOUL, South Korea, March 21, 2023 – Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that the company began full-scale mass production of its new 40V MXT Metal-Oxide-Semiconductor Field-Effect Transistor (MOSFET)1 optimized for the Electric Water Pumps (EWPs) and Electric Oil Pumps (EOPs) in electric vehicles (EVs).

Magnachip's PDFN56 Dual Packaging 40V MXT MOSFET for Electric Vehicles — Magnachip’s PDFN56 Dual Packaging 40V MXT MOSFET for EVs

This 40V MXT MOSFET (AMDUA040N070RH) comes in a Power Dual Flat No-lead (PDFN) 56 dual package to reduce the printed circuit board size by 50%, as compared to using two 40V single-packaged MOSFETs. The compact size provides great flexibility in system design and, as a result, AMDUA040N070RH is well-suited to EWPs, EOPs and even the power seat modules of EVs.

The low R_DS(on)2 enabled by the PDFN56 package reduces conduction losses, which means applications can be controlled efficiently. In addition, AMDUA040N070RH is fully AEC – Q101 qualified for its performance and stability, because of the enhanced design of its core cells and terminations for automotive applications.

Omdia, a global market research firm, estimates that the Si MOSFET market for hybrid and EVs will grow 11% annually from 2023 to 2026.

“Since 2008 we have strengthened our technological capabilities in the power solutions area” said YJ Kim, CEO of Magnachip. “As a provider of high-performance MOSFETs, Magnachip will continue to deliver innovative solutions to serve the growing demand for eco-friendly applications.”

¹ MXT MOSFET (Magnachip eXtreme Trench MOSFET): Magnachip’s cutting-edge product portfolio of trench MOSFETs, including low and medium voltage (12V to 200V) MOSFETs

² R_DS(on): On resistance, the resistance value between the drain and the source of MOSFETs during on-state operation

Related Link

Power Solutions > MXT MOSFETs > 40V

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Yujia Zhai
The Bueshirt Group
Tel. +1-860-214-0809
Investor.relations@maganachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Enters Full-Scale Mass Production of PDFN56 Dual Packaging 40V MXT MOSFET for Electric Vehicles

SEOUL, South Korea, March 2, 2023 – Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that the company has released two seventh-generation MXT Metal-Oxide-Semiconductor Field-Effect Transistors (MOSFETs)¹, built on its Super-Short Channel technology, for the battery protection circuit modules in smartphones.

Magnachip's Super-Short Channel MXT MOSFETs — Magnachip’s Super-Short Channel MXT MOSFETs

Super-Short Channel is Magnachip’s latest design technology to shorten the channel length between the source and the drain to significantly reduce R_DS(on)²and conduction losses during on-state operation. Magnachip is applying this technology first to the newly-released 12V MOSFET (MDWC12D028ERH) and 24V MOSFET (MDWC24D031ERH).

Thanks to Super-Short Channel technology, the sizes of these new MOSFETs have been reduced by 20%, while the R_DS(on)of MDWC12D028ERH and MDWC24D031ERH is lowered by 40% and 24%, respectively, compared to the previous versions. With these enhanced product features, power loss is reduced when a battery is charging or discharging and a low operating temperature can be maintained for fast battery charging.

Magnachip plans to release compact-sized Super-Short Channel MXT MOSFETs with great power efficiency for the small batteries of wearable devices, such as smart watches and earphones, in the second half of 2023.

“The new Super-Short Channel technology has taken the performance of MXT MOSFETs to the next level.” said YJ Kim, CEO of Magnachip. “Magnachip will continue our efforts to advance technological innovation and deliver premium power management solutions satisfying the diverse and changing requirements of mobile device manufacturers.”

¹ MXT MOSFET (Magnachip eXtreme Trench MOSFET): Magnachip’s cutting-edge product portfolio of trench MOSFETs, including low and medium voltage (12V to 200V) MOSFETs

² R_DS(on): On resistance, the resistance value between the drain and the source of MOSFETs during on-state operation

Related Link

Power Solutions > MXT MOSFETs > 12V

Power Solutions > MXT MOSFETs > 24V

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Yujia Zhai
The Bueshirt Group
Tel. +1-860-214-0809
Investor.relations@maganachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Unveils Super-Short Channel MXT MOSFETs for Smartphone Battery Protection Circuit Modules

Fourth quarter revenue of $61.0 million was near the high-end of our guidance range. YoY, our revenue decreased 44.7% primarily due to severe 28nm wafer shortages required for our Display business.
Full-year revenue of $337.7 million decreased 28.8% YoY due to significantly lower Display revenue as a result of severe 28nm 12-inch OLED wafer shortages that impacted 2^nd half design-in projects from our large panel customers in Korea and weak demand for Android smartphones that led to an inventory correction by smartphone OEMs.
Gross profit margin for the fourth quarter was 26.4%, within our guidance range.
Full-year gross profit margin of 30.0% was down 240 bps YoY due mainly to certain inventory reserves and scrap cost related to 12-inch OLED products as a result of lower demand for China smartphones.
GAAP diluted earnings per share for the fourth quarter was $0.07; Full-year GAAP diluted loss per share was $0.18.
Non-GAAP diluted loss per share for the fourth quarter was $0.36; Full-year non-GAAP diluted earnings per share was $0.19.

SEOUL, South Korea, Feb. 16, 2023 /PRNewswire/ — Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the fourth quarter and full-year 2022.

(PRNewsfoto/Magnachip Semiconductor) YJ Kim, Magnachip’s chief executive officer commented, “We closed the fourth quarter with $61.0 million revenue, near the high-end of our guidance range. Q4 results continued to reflect the impact of severe wafer shortages and inventory correction in our Display business and deteriorating consumer demand in our Power Solutions business. Despite the challenges of this past year, we stayed focused and achieved milestones that set the foundation for recovery in 2023. In Display, we expanded our OLED business into international markets by winning a new tier one panel customer outside of Korea and strengthened our global supply chain by qualifying two additional foundries. Further, in Q4, we successfully qualified two OLED projects with our two leading panel customers and expect to begin shipping at the end of this quarter. In Power Solutions, we achieved a record year with 2022 revenue up 1.2% despite the slowdown in the 2^nd half due to macro weakness. Further, our Power Solutions business won a record 209 design-in/wins, more than double compared to previous years.”

YJ continued, “Looking ahead, we continue to expect the first half of 2023 to be impacted by inventory corrections and broader macro weakness, but we believe the reopening of China should eventually lead to an improvement in their economy and consumer demand, which will help both our businesses. We expect a recovery in Display revenue in the second half of 2023 as we ramp shipments of our four design-in projects with our two leading panel customers. For Power, we anticipate on maintaining our momentum of design wins and premium tier product mix. As channel inventories are consumed and the broader economy recovers, we expect to see a rebound in Power revenue.”

Q4 and 2022 Financial Highlights

In thousands of U.S. dollars, except share data

GAAP

Q4 2022

Q3 2022

Q/Q change

Q4 2021

Y/Y change

Revenues

Standard Products Business

Display Solutions

7,556

6,355

18.9 %

41,298

down

81.7 %

Power Solutions

46,271

56,416

down

18.0 %

58,212

down

20.5 %

Transitional Fab 3 foundry services⁽¹⁾

7,163

8,428

down

15.0 %

10,825

down

33.8 %

Gross Profit Margin

26.4 %

24.2

2.2% pts

35.0 %

down

8.6%pts

Operating Income (Loss)

(10,117)

(10,008)

down

n/a

63,870

down

n/a

Net Income (Loss)

2,971

(17,195)

n/a

53,611

down

94.5 %

Basic Earnings (Loss) per Common Share

0.07

(0.38)

n/a

1.16

down

94.0 %

Diluted Earnings (Loss) per Common Share

0.07

(0.38)

n/a

1.12

down

93.8 %

In thousands of U.S. dollars, except share data

Non-GAAP⁽³⁾

Q4 2022

Q3 2022

Q/Q change

Q4 2021

Y/Y change

Adjusted Operating Income (Loss)

(8,567)

(6,646)

down

n/a

14,421

down

n/a

Adjusted EBITDA

(4,768)

(2,995)

down

n/a

18,144

down

n/a

Adjusted Net Income (Loss)

(15,848)

1,097

down

n/a

13,699

down

n/a

Adjusted Earnings (Loss) per Common Share—Diluted

(0.36)

0.02

down

n/a

0.29

down

n/a

		In thousands of U.S dollars, except share data
		GAAP
		2022				2021	Y/Y Change
Revenues
Standard Products Business
Display Solutions	71,432				205,322		down	65.2 %
Power Solutions	230,464			227,777			up	1.2 %
Transitional Fab 3 foundry services⁽¹⁾	35,762					41,131	down	13.1 %
Gross Profit Margin			30.0 %		32.4 %		down	2.4% pts
Operating Income (Loss)⁽²⁾	(5,244)					83,407	down	n/a
Net Income (Loss)	(8,036)					56,708	down	n/a
Basic Earnings (Loss) per Common Share	(0.18)					1.26	down	n/a
Diluted Earnings (Loss) per Common Share	(0.18)					1.21	down	n/a

			In thousands of U.S dollars, except share data
				Non-GAAP⁽³⁾
			2022	2021	Y/Y Change
Adjusted Operating Income		4,091		56,135	down	92.7 %
Adjusted EBITDA	19,517			70,701	down	72.4 %
Adjusted Net Income	8,752			50,152	down	82.5 %
Adjusted Earnings per Common Share—Diluted			0.19	1.07	down	82.2 %



(1)	Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, and for a period of up to three years, we will provide transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi (“Transitional Fab 3 Foundry Services”). Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the standard products business allows investors to better understand the results of our core standard products display solutions and power solutions business lines.
(2)	For the year ended December 31, 2021, operating income of $83.4 million included net gain of $35.5 million that represented $70.2 million income from the recognition of a reverse termination fee, net of professional service fees and expenses of $34.7 million incurred in connection with the contemplated merger transaction.
(3)	Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net income (loss) or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is included in this press release.

Financial Guidance

The Company’s near-term outlook is being challenged by previous OLED wafer allocation constraints that impacted 2nd half 2022 design-in projects and ongoing inventory correction in smartphones and other consumer end markets driven by weakening consumer demand. Q1 is also typically the Company’s seasonally slowest quarter following holiday shipments and is impacted by slower activity around the Chinese New Year.

In response to the industry-wide slowdown and inventory correction, the Company has reduced production at its Fab 3. As a result, the Company expects Q1’23 gross profit margin will be further impacted by lower utilization as well as higher manufacturing input costs such as electricity and wages. The Company currently expects gross profit margin to recover as volume and utilization improves in the 2nd half of 2023.

While actual results may vary, Magnachip currently expects the following for Q1’23:

Revenue to be in the range of $55 million to $59 million, including about $5 million of Transitional Fab 3 Foundry Services.
Gross profit margin to be in the range of 21% to 23%.

Q4 2022 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Thursday, February 16, 2023, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.

Online registration: https://register.vevent.com/register/BI7b1cf7d40d2f43489a0d4fc290ea1ea2

Safe Harbor for Forward-Looking Statements

Information in this release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including first quarter 2023 revenue and gross profit margin expectations, and the impact of market conditions associated with inflation and rising interest rates, the COVID-19 pandemic or the emergence of various variants of the virus, geopolitical conflict between Russia and Ukraine, and escalated trade tensions and supply constraints on Magnachip’s first quarter 2023 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic and/or general economic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the COVID-19 pandemic or the emergence of various variants of the virus or other outbreaks of disease, and governmental lock-downs or other measures implemented in response thereto, and the Russia-Ukraine conflict; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs, as well as impacting demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely design acceptance by our customers; timely introduction of new products and technologies; ability to ramp new products into volume production; industry wide shifts in supply and demand for semiconductor products; industry and/or company overcapacity; effective and cost efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses which can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors, including those related to the Russia-Ukraine conflict; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic or the emergence of various variants of the virus; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products, including uncertainties regarding the impacts of the COVID-19 pandemic or the emergence of various variants of the virus that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip’s products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on February 23, 2022 and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACT:

Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share data) (Unaudited)

	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Revenues:
Net sales – standard products business	$ 53,827	$ 62,771	$ 99,510	$ 301,896	$ 433,099
Net sales – transitional Fab 3 foundry services	7,163	8,428	10,825	35,762	41,131

Total revenues	60,990	71,199	110,335	337,658	474,230
Cost of sales:
Cost of sales – standard products business	37,150	45,497	62,206	202,347	283,503
Cost of sales – transitional Fab 3 foundry services	7,742	8,477	9,525	34,047	37,184

Total cost of sales	44,892	53,974	71,731	236,394	320,687

Gross profit	16,098	17,225	38,604	101,264	153,543
Gross profit as a percentage of standard products business net sales	31.0 %	27.5 %	37.5 %	33.0 %	34.5 %
Gross profit as a percentage of total revenues	26.4 %	24.2 %	35.0 %	30.0 %	32.4 %
Operating expenses:
Selling, general and administrative expenses	12,562	11,411	13,255	50,872	52,440
Research and development expenses	13,653	13,321	12,197	52,338	51,212
Merger-related income, net	—	—	(49,369 )	—	(35,527 )
Other charges, net	—	2,501	(1,349 )	3,298	2,011

Total operating expenses (income)	26,215	27,233	(25,266 )	106,508	70,136

Operating income (loss)	(10,117)	(10,008)	63,870	(5,244)	83,407
Interest income	2,420	1,784	858	5,980	2,609
Interest expense	(269)	(278)	(132 )	(1,157)	(1,371 )
Foreign currency gain (loss), net	17,492	(12,809)	147	(3,019)	(11,853 )
Other income, net	(42)	174	89	561	1,177

Income (loss) before income tax expense (benefit)	9,484	(21,137)	64,832	(2,879)	73,969
Income tax expense (benefit)	6,513	(3,942)	11,221	5,157	17,261

Net income (loss)	$ 2,971	$ (17,195)	$ 53,611	$ (8,036)	$ 56,708

Basic earnings (loss) per common share—	$ 0.07	$ (0.38)	$ 1.16	$ (0.18)	$ 1.26
Diluted earnings (loss) per common share—	$ 0.07	$ (0.38)	$ 1.12	$ (0.18)	$ 1.21
Weighted average number of shares—
Basic	44,054,275	44,865,266	46,369,520	44,850,791	44,879,412
Diluted	44,731,683	44,865,266	47,691,816	44,850,791	47,709,373

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share data) (Unaudited)

	December 31, 2022	December 31, 2021
	(In thousands of U.S. dollars, except share data)
Assets
Current assets
Cash and cash equivalents	$ 225,477	$ 279,547
Accounts receivable, net	35,380	50,954
Inventories, net	39,883	39,370
Other receivables	7,847	25,895
Prepaid expenses	10,560	7,675
Hedge collateral	2,940	3,060
Other current assets	15,766	2,619

Total current assets	337,853	409,120
Property, plant and equipment, net	110,747	107,882
Operating lease right-of-use assets	5,265	4,275
Intangible assets, net	1,930	2,377
Long-term prepaid expenses	10,939	8,243
Deferred income taxes	38,324	41,095
Other non-current assets	11,587	10,662

Total assets	$ 516,645	$ 583,654

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 17,998	$ 37,593
Other accounts payable	9,702	6,289
Accrued expenses	9,688	20,071
Accrued income taxes	3,154	11,823
Operating lease liabilities	1,397	2,323
Other current liabilities	5,306	7,382

Total current liabilities	47,245	85,481
Accrued severance benefits, net	23,121	33,064
Non-current operating lease liabilities	4,091	1,952
Other non-current liabilities	14,035	10,395

Total liabilities	88,492	130,892

Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 56,432,449 shares issued and 43,824,575 outstanding at December 31, 2022 and 55,905,320 shares issued and 45,659,304 outstanding at December 31, 2021	564	559
Additional paid-in capital	266,058	241,197
Retained earnings	335,506	343,542
Treasury stock, 12,607,874 shares at December 31, 2022 and 10,246,016 shares at December 31, 2021, respectively	(161,422)	(130,306 )
Accumulated other comprehensive loss	(12,553)	(2,230 )

Total stockholders’ equity	428,153	452,762

Total liabilities and stockholders’ equity	$ 516,645	$ 583,654

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited)


	Three Months Ended	Year Ended
	December 31, 2022	December 31, 2022	December 31, 2021
Cash flows from operating activities
Net income (loss)	$ 2,971	$ (8,036)	$ 56,708
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization	3,775	15,000	14,239
Provision for severance benefits	1,126	6,289	8,282
Amortization of debt issuance costs and original issue discount	—	—	261
Loss (gain) on foreign currency, net	(46,606)	19,729	32,432
Provision for inventory reserves	1,844	9,574	2,244
Stock-based compensation	1,550	6,037	7,704
Deferred income tax assets	56	278	918
Other, net	255	664	(613)
Changes in operating assets and liabilities
Accounts receivable, net	2,471	10,276	7,505
Inventories	582	(12,626)	(5,939)
Other receivables	1,031	18,146	(21,538)
Other current assets	9,967	(4,150)	12,397
Accounts payable	(1,533)	(16,325)	(11,437)
Other accounts payable	(3,195)	(9,410)	(7,798 )
Accrued expenses	(13,094)	(7,228)	4,637
Accrued income taxes	3,083	(8,400)	(1)
Deferred revenue	(47)	(1,261)	(131)
Other current liabilities	(276)	(645)	1,445
Other non-current liabilities	226	749	(1,398 )
Contributions to severance insurance deposit accounts	(7,662)	(7,899)	(5,688)
Payment of severance benefits	(1,831)	(6,012)	(6,679)
Other, net	228	415	193

Net cash provided by (used in) operating activities	(45,079)	5,165	87,743
Cash flows from investing activities
Proceeds from settlement of hedge collateral	12,427	15,232	5,214
Payment of hedge collateral	—	(15,282)	(3,349 )
Proceeds from disposal of property, plant and equipment	—	550	1,446
Purchase of property, plant and equipment	(11,582)	(23,394)	(32,212 )
Payment for intellectual property registration	(89)	(390)	(614 )
Collection of guarantee deposits	—	—	3,192
Payment of guarantee deposits	(306)	(2,381)	(5,001 )
Other, net	495	737	(114 )

Net cash provided by (used in) investing activities	945	(24,928)	(31,438 )
Cash flows from financing activities
Proceeds from exercise of stock options	—	1,786	4,279
Acquisition of treasury stock	(8,895)	(13,960)	(1,653 )
Acquisition of stock under accelerated stock repurchase agreement	—	—	(20,073)
Payment under accelerated stock repurchase agreement	—	—	(17,427)
Repayment of financing related to water treatment facility arrangement	(119)	(500)	(563 )
Others	(20)	(70)	(107)

Net cash used in financing activities	(9,034)	(12,744)	(35,544 )
Effect of exchange rates on cash and cash equivalents	27,814	(21,563)	(21,154 )

Net decrease in cash and cash equivalents	(25,354)	(54,070)	(393 )
Cash and cash equivalents
Beginning of the period	250,831	279,547	279,940

End of the period	$ 225,477	$ 225,477	$ 279,547

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (In thousands of U.S. dollars) (Unaudited)

	Three Months Ended							Year Ended
	December 31, 2022		September 30, 2022		December 31, 2021			December 31, 2022		December 31, 2021
Operating income (loss)	$	(10,117)	$	(10,008)		$	63,870	$	(5,244)		$	83,407
Adjustments:
Equity-based compensation expense		1,550		861			1,648		6,037			7,704
Inventory reserve related to Huawei impact of downstream trade restrictions		—		—			(379)		—			(1,460)
Merger-related income, net		—		—			(49,369)		—			(35,527)
Other charges, net		—		2,501			(1,349)		3,298			2,011

Adjusted Operating Income (Loss)	$	(8,567)	$	(6,646)		$	14,421	$	4,091		$	56,135

For the year ended December 31, 2022, Other charges, net includes $2.8 million of one-time employee incentives and professional service fees and expenses of $1.0 million, incurred in connection with certain strategic evaluations, both of which were offset in part by a $0.5 million gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi. For the year ended December 31, 2021, Other charges, net includes $3.4 million of non-recurring professional service fees and expenses incurred in connection with the regulatory requests, partially offset by $1.4 million gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi (which was closed during the year ended December 31, 2018).

For the year ended December 31, 2021, we recorded in our consolidated statement of operations net gain of $35.5 million that represented income of $70.2 million from the recognition of a reverse termination fee, net of professional service fees and expenses of $34.7 million incurred in connection with the contemplated merger transaction of the Company that was terminated in December 2021.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) (In thousands of U.S. dollars, except share data) (Unaudited)

	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Net income (loss)	$ 2,971	$ (17,195)	$ 53,611	$ (8,036)	$ 56,708
Adjustments:
Interest income	(2,420)	(1,784)	(858)	(5,980)	(2,609)
Interest expense	269	278	132	1,157	1,371
Income tax expense (benefit)	6,513	(3,942)	11,221	5,157	17,261
Depreciation and amortization	3,775	3,623	3,663	15,000	14,239

EBITDA	11,108	(19,020)	67,769	7,298	86,970
Equity-based compensation expense	1,550	861	1,648	6,037	7,704
Foreign currency loss (gain), net	(17,492)	12,809	(147)	3,019	11,853
Derivative valuation loss (gain), net	66	(146)	(29)	(135)	(123)
Inventory reserve related to Huawei impact of downstream trade restrictions	—	—	(379)	—	(1,460)
Merger-related income, net	—	—	(49,369)	—	(35,527)
Other charges, net	—	2,501	(1,349)	3,298	1,284

Adjusted EBITDA	$ (4,768)	$ (2,995)	$ 18,144	$ 19,517	$ 70,701


Net income (loss)	$ 2,971	$ (17,195 )	$ 53,611	$ (8,036)	$ 56,708
Adjustments:
Equity-based compensation expense	1,550	861	1,648	6,037	7,704
Foreign currency loss (gain), net	(17,492)	12,809	(147)	3,019	11,853
Derivative valuation loss (gain), net	66	(146 )	(29)	(135)	(123)
Inventory reserve related to Huawei impact of downstream trade restrictions	—	—	(379)	—	(1,460)
Merger-related income, net	—	—	(49,369)	—	(35,527)
Other charges, net	—	2,501	(1,349)	3,298	1,284
Income tax effect on non-GAAP adjustments	(2,943)	2,267	9,713	4,569	9,713

Adjusted Net Income (Loss)	$ (15,848)	$ 1,097	$ 13,699	$ 8,752	$ 50,152

Adjusted Net Income (Loss) per common share—
– Basic	$ (0.36)	$ 0.02	$ 0.30	$ 0.20	$ 1.12
– Diluted	$ (0.36)	$ 0.02	$ 0.29	$ 0.19	$ 1.07
Weighted average number of shares – basic	44,054,275	44,865,266	46,369,520	44,850,791	44,879,412
Weighted average number of shares – diluted	44,054,275	45,747,255	47,691,816	45,795,559	47,709,373

We present Adjusted EBITDA and Adjusted Net Income (Loss) as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Inventory reserve related to Huawei impact of downstream trade restrictions, (v) Merger-related income, net and (vi) Other charges, net. EBITDA for the periods indicated is defined as net income (loss) before interest income, interest expense, income tax expense (benefit) and depreciation and amortization.

We prepare Adjusted Net Income (Loss) by adjusting net income (loss) to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income (Loss) is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income (Loss) for the periods as net income (loss), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Inventory reserve related to Huawei impact of downstream trade restrictions, (v) Merger-related income, net, (vi) Other charges, net and (vii) Income tax effect on non-GAAP adjustments.

For the quarter and year ended December 31, 2021, the adjustment for GAAP and cash tax expense difference in connection with the release of valuation allowances will no longer be an adjustment included in the Company’s non-GAAP financial measure. As such, Adjusted Net Income and Adjusted Net Income per Common Share for Q4 2021 and for the full year 2021 presented here have been recast to reflect the removal of this adjustment in accordance with Securities and Exchange Commission guidance.

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SOURCE Magnachip Semiconductor Corporation

SEOUL, South Korea, Jan. 3, 2023 /PRNewswire/ — Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that its management will participate virtually in the 25^th Annual Needham Growth Conference on January 12, 2023.

Mr. YJ Kim, Magnachip’s chief executive officer, and Ms. Shinyoung Park, Magnachip’s chief financial officer, will be available for one-on-one meetings with institutional investors during the conference. For more information about the conference or to request a one-on-one meeting, please contact a Needham sales representative.

About Magnachip Semiconductor Corporation

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:
Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com

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SOURCE Magnachip Semiconductor Corporation

– Magnachip’s eighth-generation 150V MXT MOSFET features lower R_DS(on) and a TOLL package to enable motor controllers and battery management systems to be managed efficiently

SEOUL, South Korea, December 29, 2022 – Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that the company has launched its eighth-generation 150V MXT Metal-Oxide-Semiconductor Field-Effect Transistor (MOSFET)¹ optimized for Light Electric Vehicle (LEV) motor controllers and battery management systems (BMSs).

Energy efficiency plays a critical role in electric devices when it comes to power consumption and product stability. This newly-released MOSFET (MDT15N054PTRH) features Magnachip’s eighth-generation trench MOSFET technology to lower R_DS(on)² by 28%, as compared to the previous generation. Based on the enhanced design of the core cell and termination, a high figure of merit can be achieved and an increase in the total gate charge³ can be avoided.

MDT15N054PTRH is available in a surface mount device TO-Leadless (TOLL) package to reduce product size and improve heat dissipation. The energy efficiency is also significantly enhanced by fast switching, while enabling high power density. In addition, a guaranteed operating junction temperature from -55°C up to 175°C and a high level of avalanche ruggedness help the new MXT MOSFET to exceed the performance requirements of LEV motor controllers and BMSs.

“Beginning in 2008 we have released more than 40 MOSFET products for motor controllers and battery management systems and, since 2017, most of them have been made for LEV applications,” said YJ Kim, CEO of Magnachip. “As a provider of high-performance MOSFETs, Magnachip will continue to deliver innovative solutions that meet the sophisticated requirements of the market.”

Product features

low R_DS(on)and switching loss
great heat dissipation performance
guaranteed operating junction temperature from -55°C up to 175°C
a wide range of applications, such as LEV motor controllers and BMSs and switch mode power supplies for various consumer electronics

Magnachip introduces 8th-Gen 150V MXT MOSFET for Light Electric Vehicles

¹ MXT MOSFET (Magnachip eXtreme Trench MOSFET): Magnachip’s cutting-edge product portfolio of trench MOSFETs, including low and medium voltage MOSFETs

² R_DS(on): On resistance, the resistance value between the drain and the source of MOSFETs during on-state operation

³ Total gate charge (Q_g): the amount of charge required to be injected into the gate electrode to turn ON (drive) the MOSFET

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Yujia Zhai
The Bueshirt Group
Tel. +1-860-214-0809
Investor.relations@maganachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Introduces 8th-Gen 150V MXT MOSFET for Light Electric Vehicles

SEOUL, South Korea, November 15, 2022 – Magnachip Semiconductor Corporation (“Magnachip”) (NYSE: MX) announced today that the company has launched its first Power Management Integrated Circuit (PMIC) for IT devices equipped with OLED screens.

Magnachip's First Power Management IC Optimized for OLED IT Devices — Magnachip’s First Power Management IC Optimized for OLED IT Devices

A PMIC is a core component to supply power to electronic devices. It plays an increasingly important role as the battery life of handheld IT devices like laptops and tablets is highly dependent on power efficiency.

Based on Magnachip’s integrated power IC technology, this newly-designed PMIC communicates with a system by using an Inter-Integrated Circuit (I²C). Therefore, it can control functions such as output voltage control, ON/OFF block, output voltage sequence management, protection circuit fault flag, and switching frequency transition — all of which offer seamless connectivity and outstanding performance.

The fast transient response of this PMIC supports a variable refresh rate. This allows a screen to adjust how often it refreshes the image to match the frame rate without user input. This feature greatly reduces power consumption and enables a smooth and comfortable viewing experience for games and high-quality videos at refresh rates of 60Hz~240Hz.

In addition, the power circuit can be simple and compact. This new IC incorporates one boost regulator for the power supply to source and gate drivers, one low dropout (LDO) regulator, two voltage reference operational amplifiers, three negative output LDO regulators, three high-current buck regulators for power supply to a timing controller and two operational amplifiers for the gamma buffer. This level of integration results in smaller and faster electronic circuits. Engineered with strong circuit protection, this PMIC also provides over-voltage protection, short circuit protection, thermal shutdown, under voltage lockout, over current detection, over current shutdown and clamping circuit.

Omdia, a global market research firm, estimates that the OLED panel shipments for laptops will grow 44.3% annually from 6.3 million substrates in 2022 to 39.2 million substrates by 2027. The research firm also expects that OLED panels for tablet PCs will be shipped from 3.9 million substrates this year to 24.2 million substrates in 2027.

“The expansion of OLED applications in IT devices is expected to continue,” said YJ Kim, CEO of Magnachip. “Magnachip will extend its premium PMIC product line through technological validation for a wide range of IT applications to address changing market demand and design requirements.”

Related Link

Power Solutions > Overview

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,100 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.

CONTACTS:

United States (Investor Relations):
Yujia Zhai
The Bueshirt Group
Tel. +1-860-214-0809
Investor.relations@maganachip.com

USA media / industry analysts:
Mike Newsom
LouVan Communications, Inc.
Tel. +1-617-803-5385
mike@louvanpr.com

Korea / Asia media:
Min A KIM
Senior manager of Public Relations
Tel. +82-2-6903-3211
pr@maganachip.com

In the Media

Magnachip Unveils its First Power Management IC Optimized for OLED IT Devices

Magnachip unveils power management IC optimised for OLED IT devices

Category: News

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Magnachip Unveils Super-Short Channel MXT MOSFETs for Smartphone Battery Protection Circuit Modules

Magnachip Reports Results for Fourth Quarter and Full-Year 2022

Magnachip to Participate in 25th Annual Needham Growth Conference

Magnachip Introduces 8th-Gen 150V MXT MOSFET for Light Electric Vehicles

Magnachip Unveils its First Power Management IC Optimized for OLED IT Devices